The Role of Organizational Commitment in Mediating the Effect of Ethical Leadership on Employee Performance

Abstract

This study aims to analyze the effect of ethical leadership on employee performance, with organizational commitment as a mediating variable, at the Human Resources Bureau of the North Sumatra Regional Police. This study employs a quantitative approach using a survey method. The study population consisted of 115 employees, and the entire population was sampled using a saturation sampling technique. Data were collected via a questionnaire and analyzed using Partial Least Squares (PLS)-based Structural Equation Modeling (SEM) with the assistance of SmartPLS software. The analysis results indicate that all research indicators met the criteria for validity and reliability. The coefficient of determination (R²) indicates that ethical leadership explains 11.2% of the variation in organizational commitment, while ethical leadership combined with organizational commitment explains 41.7% of the variation in employee performance. Hypothesis testing revealed that ethical leadership has a positive and significant effect on employee performance (β = 0.211; p < 0.001) as well as on organizational commitment (β = 0.335; p < 0.001). Furthermore, organizational commitment has a positive and significant effect on employee performance (β = 0.544; p < 0.001). The results of the indirect effect test indicate that organizational commitment positively and significantly mediates the relationship between ethical leadership and employee performance (β = 0.182; p < 0.001). The research findings indicate that the implementation of leadership grounded in ethical values can enhance employees’ organizational commitment, which ultimately leads to improved employee performance. Therefore, strengthening ethical leadership and organizational commitment is a crucial strategy for improving employee performance within the Human Resources Bureau of the North Sumatra Regional Police.